Strategic Solutions
Alternative & Private Lending Solutions
Structured alternative financing for complex files. We leverage deep private lender relationships to create approvals where traditional channels cannot.
When Banks Say No, Private Lending Offers a Path Forward
There are many legitimate reasons why a qualified, responsible borrower might not meet the strict criteria of traditional banks and alternative lenders. Perhaps you recently experienced a life event like a divorce, job loss, or health issue that temporarily impacted your credit. Maybe you are self-employed and your tax returns do not reflect your true income. Perhaps you need financing urgently and cannot wait the weeks or months a traditional lender requires. Or maybe the property itself, due to its type, condition, or zoning, does not fit within conventional lending guidelines. In all of these situations, a private mortgage can provide the capital you need when you need it, secured by the equity in your property. As a mortgage agent in Ontario, I work with a trusted network of private lenders who provide fair, transparent financing to borrowers across the province, from Toronto and Mississauga to Hamilton, Ottawa, and every community in between. My role is not just to arrange the private mortgage but to ensure it is structured properly with a clear exit strategy to transition you to better terms as soon as possible.
Understanding How Private Mortgages Work in Ontario
A private mortgage is a loan from an individual investor, mortgage investment corporation, or private lending fund, secured by real property. Unlike banks that focus heavily on credit scores and income documentation, private lenders prioritize the equity in the property itself. If your home is worth $800,000 and you owe $400,000, you have $400,000 in equity. A private lender may lend up to 75 to 80 percent of the property's value, meaning you could potentially borrow up to $240,000 in additional funds. Private mortgages are typically short-term, ranging from 6 to 24 months, with rates that vary depending on risk profile, loan-to-value, property type, and market conditions. The higher cost reflects the increased flexibility and reduced qualification requirements. These are not permanent financing solutions but strategic bridges that provide immediate capital while you work to qualify for traditional lending. Every private mortgage I arrange includes a detailed exit strategy developed in partnership with the borrower, outlining the specific steps and timeline to transition to a prime or alternative lender at a lower rate.
The Importance of Working With an Ethical Private Mortgage Agent
The private lending space requires careful structuring and transparent disclosure to ensure borrowers are protected. Borrowers who need financing urgently deserve an agent who will take the time to explain every cost, negotiate fair terms, and ensure a viable exit strategy is in place. This is why working with a licensed, experienced mortgage agent who prioritizes your long-term financial health is absolutely critical when considering private financing. I have built relationships with established, reputable private lenders who offer competitive rates within the private lending market and fair, transparent fee structures. I never recommend a private mortgage unless I believe it is genuinely in the borrower's best interest, and every deal includes a clear plan to move to better financing within 12 to 24 months. My clients in Toronto, Mississauga, Brampton, Hamilton, Oshawa, and communities across Ontario trust me to protect their interests even when they are in difficult financial situations.
How It Works
Our Step-by-Step Process
Situation Assessment
I understand your circumstances, urgency, property details, and goals to determine if private lending is the right solution.
Lender Matching
Your file is presented to the private lenders most likely to offer competitive terms for your specific situation and property type.
Exit Strategy Development
Before committing, we build a clear timeline and action plan to transition from private to prime or alternative lending.
Efficient Closing
Private mortgages may close more quickly than traditional financing, depending on deal complexity and lender requirements.
Complex situations require strategic solutions. Let us structure the right one for you.
Is This Right For You
Who This Is For & What We Examine
Ideal Candidates
- Borrowers declined by banks and alternative lenders who have sufficient property equity
- Those needing fast financing for time-sensitive opportunities or urgent situations
- Self-employed individuals whose income documentation does not meet traditional lending standards
- Clients with recent credit events including bankruptcy, consumer proposal, or collections
- Property investors and developers needing short-term bridge financing between transactions
- Homeowners facing power of sale, tax arrears, or other urgent equity protection situations
- Buyers purchasing unique or unconventional properties that traditional lenders will not finance
- Those who need a second mortgage behind an existing first mortgage for additional capital
What We Review
- Property value through professional appraisal and equity position (the primary qualification factor)
- Loan-to-value ratio and maximum borrowing capacity based on your property
- Clear and achievable exit strategy including timeline and action steps for transitioning to better terms
- Complete cost of borrowing analysis including interest rate, lender fees, broker fees, and legal costs
- Term length options and payment structure (interest-only vs. principal and interest)
- Legal requirements including independent legal advice and mortgage registration process
- Comparison of private options to ensure the most competitive terms available in the market
- Credit and income improvement plan to qualify for prime or alternative lending at exit
Private Mortgage Costs: Understanding the Full Picture
Transparency about costs is essential in private lending. Private mortgage interest rates vary depending on risk profile, loan-to-value, property type, and market conditions, and are significantly higher than prime lending rates. In addition to the interest rate, most private mortgages include a lender fee and a broker fee, both of which are typically deducted from the mortgage advance at closing. Legal fees for both the borrower and lender are additional costs. For illustration purposes only: on a $200,000 private mortgage at 9 percent for 12 months with a 2 percent lender fee and 1 percent broker fee, the total cost of borrowing would be approximately $24,000 in interest plus $6,000 in fees plus legal costs. Actual rates and fees may be higher or lower. This is significantly more expensive than traditional financing, which is why private mortgages should only be used when there is a clear financial benefit or urgent necessity, and always with a defined exit timeline. I provide a complete cost breakdown before any commitment so you understand exactly what you are paying and can make an informed decision.
Exit Strategies: Moving From Private to Prime Lending
The single most important element of any private mortgage is the exit strategy. A private mortgage without a plan to transition to cheaper financing is a path to financial difficulty. I build a customized exit plan for every client that typically includes specific credit improvement actions such as paying down balances, disputing inaccuracies, and establishing positive payment history. For self-employed clients, the plan may include adjusting tax filing strategies or organizing documentation for alternative lender qualification. For those who experienced a credit event like bankruptcy or consumer proposal, the timeline is based on when the event is discharged and removed from the credit report, typically two years after discharge for an alternative lender and three to four years for a prime lender. I monitor progress throughout the private mortgage term, provide guidance on credit building, and begin the transition process to prime or alternative lending well before the private term expires. Clients across Ontario from London to Kingston, Oshawa to Sudbury, find that having a proactive exit plan from day one transforms the private mortgage from a burden into a stepping stone.
Second Mortgages: Accessing Additional Capital While Keeping Your First Mortgage
A second mortgage is a private mortgage that sits behind your existing first mortgage. This is a common solution when your first mortgage has favorable terms you do not want to disturb, but you need access to additional capital. For example, if you have a first mortgage at 3 percent with three years remaining and you need $100,000 for debt consolidation, breaking your first mortgage might cost $15,000 to $20,000 in penalties. A private second mortgage allows you to access the equity without touching your first mortgage. The rate on a second mortgage is typically higher than a first mortgage private rate because the second mortgage lender is in a subordinate position behind the first mortgage holder. Rates vary depending on risk profile, loan-to-value, property type, and market conditions, with fees similar to first mortgage private lending. I analyze whether a second mortgage or a full refinance provides the better financial outcome based on your specific penalty structure, equity position, and capital needs. Homeowners in the GTA communities of Toronto, Mississauga, Brampton, Vaughan, and Markham frequently use second mortgages as a strategic tool when their first mortgage penalty makes refinancing cost-prohibitive.
Power of Sale Prevention and Emergency Private Financing
When a homeowner falls behind on mortgage payments, their lender can initiate a power of sale proceeding, which can result in the forced sale of the property, often at below-market value. A private mortgage can stop a power of sale by bringing the existing mortgage current or paying it off entirely, preserving your equity and your home. Speed is critical in these situations, and private lenders may be able to close more quickly than traditional financing channels. If you are facing a power of sale notice from your lender, CRA tax liens, or other urgent financial situations threatening your home, contact me immediately. I have helped numerous Ontario homeowners in communities from Barrie to Hamilton, Oshawa to Ottawa, protect their most valuable asset through emergency private financing. The key is acting quickly because once a power of sale advances past certain legal milestones, the options narrow significantly.
Watch Out
Common Mistakes to Avoid
Using a private mortgage without a clear, documented exit strategy to transition to cheaper financing within 12 to 24 months
Not fully understanding the total cost of borrowing including all interest, lender fees, broker fees, and legal costs before committing
Accepting terms from the first private lender without comparing multiple options to ensure competitive pricing
Treating a private mortgage as a long-term financing solution rather than a strategic short-term bridge
Not working on credit improvement and income documentation during the private mortgage term to prepare for transition
Using a private mortgage to borrow more than you can reasonably service, creating a worse financial situation
Not obtaining independent legal advice before signing private mortgage documents as required by law
Serving All of Ontario
Available Across Ontario
We serve clients in every corner of Ontario. Whether you are in the heart of Toronto or in a smaller community, our mortgage solutions are available to you.
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Frequently Asked Questions
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The information on this page is for general informational purposes only and does not constitute financial, legal, or tax advice. Rates, terms, and eligibility criteria are subject to change and vary by lender. All mortgage approvals are subject to lender underwriting criteria and conditions. Steven Himelfarb, Mortgage Agent Level 2 (Lic. #M19002406) | Integrity Tree Mortgages Inc. o/a Integrity Tree Financial (Brokerage Lic. #12963). Licensed and regulated by the Financial Services Regulatory Authority of Ontario (FSRA).
Steven Himelfarb is a licensed Mortgage Agent Level 2 operating under Integrity Tree Financial (Brokerage Licence #12963). He acts as an intermediary between borrowers and lenders. He does not lend funds, hold investor capital, administer mortgages, or guarantee mortgage approvals or investment returns.
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